Introduction
By 2017, Nigeria’s seaports were choking under the weight of inefficiencies. Over 90% of Nigeria’s trade flows through its ports, with Apapa alone handling more than 80% of that volume (WITS, 2023; William, 2020). A well-functioning port is essential for lowering trade costs, improving supply chains, attracting investment, and boosting trade (Mlambo, 2021; Ayesu, et al 2023). Yet, Nigeria’s ports have persistently been rated among the world’s least efficient, ranking 90th and 110th on the 2016 and 2018 Logistics Performance Index (LPI), respectively (World Bank, 2020).
Apapa Port, the country’s busiest maritime hub, was plagued by long cargo dwell time of 23 days as against the global average of 4 days, congested access roads, endless paperwork, and entrenched corruption. The gross inefficiencies across port operations did not go unnoticed globally. According to the World Bank, Apapa port is the most influencing contributor to Nigeria’s abysmal rankings of 170th and 169th in the global Ease of Doing Business index for 2014 and 2015, out of 189 and 190 countries respectively. Available data indicate that Apapa Port has never been ranked among the top 100 efficient ports globally.
To streamline port operations and improve competitiveness, in April 2017 the Nigerian government introduced a reform under Executive Order One (EO1). But seven years later, Nigeria’s port performance is worse, not better. My PhD dissertation delves into the political economy of Apapa port operations reform. It offers both a diagnosis of the failed 2017 reform and a roadmap for fixing Nigeria’s port woes. The findings are critical not just for maritime logistics professionals, but for anyone invested in Nigeria’s economic development.
Stuck at the Dock: Nigeria’s Failed Port Reform and A Way Forward
The Reform That Looked Good on Paper
The 2017 EO1 Port Operations Reform had a simple goal: to cut red tape and make Nigerian ports more business-friendly. It introduced some key mandates, including 24-hour port operations, 48-hour cargo clearance, reduced number of regulatory agencies at ports, eliminating touts within port complexes and the use of a single window system to digitize and centralize operations (NIPC,2023). However, several years after the reform was introduced, almost none of these reform goals were fully implemented. Apapa Port never achieved 24/7 operations. Cargo clearance still takes an average of 21 days, five times longer than global best practice. The number of port agencies has even grown to more than 12 agencies in 2022 (Anayo, 2022, Daily Trust, 2022).
What went wrong?
A Missing Ingredient
Our paper uncovers a major flaw in the 2017 reform effort: it lacked adequate stakeholder engagement during the design phase. Though touted as a consultative process, the reform proposal was rushed, drafted and issued within months to showcase the government’s commitment to ease of doing business. This speed came at the cost of building consensus.
The study revealed that key stakeholders such as the customs service, workers’ union, freight forwarders, customs agents, and logistics companies were not genuinely involved in the policymaking process of the reform. As a result, those who were meant to implement the reforms or be regulated by them were either ambivalent or outright resistant. Worse, many of these actors exerted subtle but powerful influence to undermine the reforms. This “low interest, high influence” group consisted of those who stood to gain the least from the reforms but had the most power to sabotage them, most notably the customs service and dock workers unions.
The dissertation draws from political economy theory to explain how reforms often fail not because they introduced bad policies, but because they threaten entrenched interests (North, 1990; Lorenzi & Robert, 2000; Pierson, 2004). Nigeria’s port ecosystem is a tangled web of overlapping agencies, opaque processes, and informal power brokers. Attempting to reform it without first addressing the political incentives and institutional resistance was a fatal oversight.
What Can Be Done Differently?
To strengthen the effectiveness and sustainability of port reform in Nigeria, it is imperative to institutionalize stakeholder engagement through the creation of formal consultation platforms. These platforms should bring together key actors in the port ecosystem, including port users, private sector operators, regulatory agencies, and civil society. Rather than relying on ad hoc meetings or informal feedback loops, institutionalized engagement would ensure continuous dialogue, shared responsibility, and transparency in decision-making processes. By involving stakeholders in the co-design and periodic review of port policies, the government can foster mutual trust, enhance compliance, and develop reform strategies that are both practical and reflective of the operational realities on the ground. Such collaborative mechanisms would also help to identify and resolve conflicts early, encourage innovation, and build a sense of ownership that is crucial for the long-term success of any reform agenda.
In addition to fostering dialogue, there is a pressing need to anchor port reform initiatives in legislation rather than relying solely on executive orders or policy directives. While executive instruments may offer flexibility and speed in implementation, they are often vulnerable to abrupt policy reversals or neglect with changes in political leadership. By enshrining reforms in law, the government can provide a stable and enduring legal framework that binds successive administrations to a shared vision for port governance and development. Legislative backing also provides a clearer mandate for regulatory institutions, strengthens accountability, and enhances investor confidence, particularly important in a sector where long-term capital commitments are required. A well-articulated legal foundation for port reform would serve as a safeguard against political interference, bureaucratic inertia, and institutional fragmentation.
Furthermore, finalizing and operationalizing the long-stalled National Transport Policy is crucial. Importantly, the policy makes provisions for the regular monitoring and evaluation of port activities, which is essential for improving transparency, accountability, and operational performance. By establishing mechanisms for tracking port efficiency, compliance, and stakeholder satisfaction, the policy can foster evidence-based decision-making and timely interventions. Ultimately, the National Transport Policy would help reposition Nigeria’s ports as integral components of a well-coordinated and efficient national logistics network, capable of advancing the country’s trade competitiveness and economic diversification objectives.
In conclusion, the most powerful insight of the study is that good policy is not just about design, it’s about consensus building and alignment. Policies must align with institutional capacity, political realities, and stakeholder interests. When any of these are out of sync, even the best-laid plans will falter. The Apapa port case serves as a cautionary tale. For Nigeria to reclaim its place as West Africa’s trade gateway, future port reforms must avoid the mistakes of 2017: they must be inclusive, data-driven, and rooted in institutional reform. Nigeria’s ports are not just logistical centers, but they are symbols of the nation’s economic promise. But that promise will remain unfulfilled if reforms continue to ignore the messy, political, and human dimensions of change. It is time for policymakers to do the hard work of coalition-building, consultation, and institutional strengthening. Only then will Nigeria’s ports truly be open for business.
References
[1] Anayo Onukwugha (2022) Shippers’ Council Decries Delay in Cargo Clearance at Nigerian Ports. Leadership Newspaper. Available at https://leadership.ng/shippers-council-decries-delay-in-cargo-clearance-at-nigerian-ports/ Accessed 24th February, 2023
[2] Ayesu, E.K., Sakyi, D. & Darku, A.B (2023). Seaport efficiency, port throughput, and economic growth in Africa. Marit Econ Logist 25, 479–498 Available at: https://doi.org/10.1057/s41278-022-00252-8 Accessed 11th October, 2023
[3] Daily Trust Newspaper (2022). FG: Ports to Operate 24-Hour Service. 17th March, 2022 available at https://dailytrust.com/fg-ports-to-operate-24-hours-service/ Accessed 24th February, 2023
[4] Daily Trust Newspaper (2022). Why Executive Orders 1 & 5 Fail to Make Businesses Easy. 13th January 2022 available at https://dailytrust.com/why-executive-orders-1-5-fail-to-make-businesses-easy/ Accessed 24th February, 2023
[5] Lorenzi Nancy M. and Robert T. Riley (2000), Managing Change: An Overview, Journal of the American Medical Informatics Association, Volume 7, Issue 2 Pages 116–124, Mbachu, et al, (2024)
[6] Mlambo, C. (2021). The impact of port performance on trade: The case of selected African states. Economies, 9(4), 1-18. Available at: https://www.mdpi.com/2227-7099/9/4/135 and https://doi.org/10.3390/economies9040135 Accessed 11th October, 2023
[7] Nigeria Investment Promotion Commission (NIPC) (2023) Executive Order No 001 of 2017 Available on https://www.nipc.gov.ng/product/executive-order-no-001-of-2017/ Accessed 2nd February 2023
[8] North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge university press. Available at:https://books.google.nl/books?hl=en&lr=&id=oFnWbTqgN PYC&oi=fnd&pg= PA10&dq=North,+D .+C.+(1990).+Institutions,+institutional+change+and+economic+performance.+Cambridge+University+Press.&ots=s-lqN9MoW3&sig=SKC8zd74n5hoISI6 Pp5kmTFPmmg#v=onepage&q=North%2C%20D.%20C.%20(1990).%20Institutions%2C%20ins titutional%20change%20and%20economic%20performance.%20Cambridge%20 University%20P ress.&f=false Accessed 11th February, 2025
[9] William Clowes (2020) Cargo traffic surges at Nigeria ports after Benin border closure An online publication. Available at: https://www.ajot.com/news/cargo-traffic-surges-at-nigeria-ports-after-benin-border-closure
[10] World Integrated Trade Solution (WITS) (2023). Nigeria trade statistics Exports, Imports, Products, Tariffs, GDP and related Development Indicator. https://wits.worldbank.org/CountryProfile/en/NGA
About Author
Author: Nwaeze Afam Offor
Nwaeze Afam Offor is a policy strategist and development planner with over a decade of distinguished service in Nigeria’s foremost policy-making institution, the Federal Ministry of Budget and Economic Planning. Currently serving as Assistant Director, International Cooperation, Afam brings to the role a deep commitment to fostering effective policy coordination, international partnerships, and strategic development programming. He is a PhD graduate of the Institute of South-South Cooperation and Development (ISSCAD).
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